Disclosure

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Toward decision-relevant disclosure

Water and climate risks are already having material impacts; they are shifting the regulatory landscape, which in turn creates mainstream risks. Worryingly, climate change and clustered assets along vulnerable rivers exacerbate these risks.

The finance sector has thus been working on identifying, valuing and managing these risks so to build a resilient global financial system. While action has started there is still a way to go. Are and how are corporates disclosing data? Is it comparable? And importantly, is it decision-relevant?

China, facing serious environmental challenges has recognised the immediacy of the risks and is moving towards mandatory environmental disclosure for its exchanges with a tentative 2020 deadline. In the long-term, China wants to embed environmental and water risks in its credit policies. See more on China’s Water-nomic policies and what is happening with Water Risk Valution. Also, see how China is revamping business in Business Unusual. For more on disclosure explore the Big Picture and The Latest.